The federal government’s fiscal year ended last month, and the final tally offered another stark warning about the trajectory of U.S. debt.
According to Treasury Department data released on Friday, the federal budget deficit widened to $1.99 trillion, 12% worse than the $1.78 trillion gap in fiscal 2025.
That came as revenue increased 3% to $5.4 trillion, lagging behind the 6% bump in spending to $7.4 trillion. Social Security and Medicare were the biggest line items, but in third place was interest payments on the national debt, topping defense spending and Medicaid.
Gross interest costs for fiscal 2026 came in at $1.36 trillion, Treasury data show, with an average interest rate of 3.53%. That’s more than double the rate…